New Jersey’s Car Insurance System: The Basics

New Jersey’s Car Insurance System

Following an automobile accident, the type and level of auto insurance coverage that you and the other driver or drivers involved have at the time of the incident may significantly impact the legal options available to you as you seek compensation for injuries sustained during the crash. With the assistance of a knowledgeable personal injury attorney, you can aggressively pursue every legal avenue available to you in order to ensure that your receive all of the compensatory benefits to which you are entitled.

The highly experienced personal injury attorneys at Chamlin, Uliano & Walsh have extensive knowledge of New Jersey’s car insurance system and they consistently leverage this wealth of information to advocate on behalf of their clients. It is their primary goal to untangle the web of automobile insurance law that can seem extremely intimidating when you are attempting to obtain just compensation for yourself or someone you love following an auto accident injury. To speak with a legal professional who will conduct a comprehensive evaluation of your claim and outline all of your options, call 732-440-3950 or submit an online contact form.

SORRY, YOUR CLAIM ISN'T COVERED How to Choose the Right Auto Insurance Policy for You


The Auto Insurance System in New Jersey

The Automobile Insurance System in New Jersey integrates a unique combination of “No Fault” and “At-Fault” insurance classifications, leading to the title “Choice State” that is often used to refer to this system. Essentially, this system allows individuals to opt for traditional (“at-fault”) or “no fault” insurance coverage when choosing an insurance policy, each of which spells serious implications for a driver who sustains an injury during a motor vehicle accident.

Generally, under New Jersey’s “no fault” automobile insurance law, which is outlined in the Automobile Reparation Reform Act (also known as the “No Fault” Act), your own automobile insurance company is required to pay your medical bills regardless of who is at fault for the accident, hence the term “no fault insurance.” Notably, this type of policy often provides the insurance company with the power to determine the nature and extent of your medical treatment, regardless of your doctor’s recommendations. As opposed to operating at the discretion of a disconnected insurance provider, you can obtain legal representation in order to ensure that your insurance company cannot deprive you of the benefits that you continually fund through payments toward your policy premiums.

In addition, a “no fault” insurance policy restricts your ability to pursue legal action against another driver who is responsible for causing an accident, hence the common monikers “Limited Right to Sue” or “Limitation on Lawsuit,” which are used to refer to this insurance option. However, there are instances in which you are entitled to file a lawsuit against an at-fault driver, typically when you sustain injuries that are considered sufficiently severe. Specifically, you may still be entitled to file a lawsuit against the at-fault driver to compensate for physical injuries if your injuries surpass what is known as the “serious injury threshold.” Any of the following qualify an individual with “no fault” insurance coverage to file a lawsuit based on the “serious injury threshold”:

  • Loss of body part
  • Significant disfigurement or significant scarring
  • A displaced fracture
  • Loss of a fetus
  • Permanent injury: any injury shall be considered permanent when the body part or organ, or both, has not healed to function normally and will not heal to function normally with further medical treatment based on objective medical proof
  • Death


The Car Insurance System in New Jersey

The law firm of Chamlin, Uliano & Walsh unites experience with compassion, with attorneys who serve as passionate legal advocates for each of their clients. If you have been involved in a motor vehicle accident in New Jersey or if you are a New Jersey resident who was involved in a motor vehicle accident in another state, contact us online or call 732-440-3950 as soon as possible for a free consultation.